Well, if it's so clearly a case of check fraud and you have the images, at least report it to the police providing them the images, if you haven't already.
You really should have done that immediately upon hearing it was cashed, definitely upon receiving the check images. Time is not on your side AIUI, and it's already such a small sum.
My understanding is that the US Postal Inspection Service is the only police agency with jurisdiction over this. I did report it via their website immediately[1], which said that there would be a later opportunity to provide documentation if and when a criminal investigation were actually opened -- but that did not happen.
I will try to report it to the local police as well, I suppose. I will stop by later today.
[1] Immediately, meaning immediately upon learning of the fraud, which, thanks to PayPal's negligence and incompetence, was about 4 weeks after the fraud actually occurred.
The thing is, many institutions won't take you seriously until the police are involved and there's at least a case number.
It demonstrates a willingness on your part to expose yourself to local law enforcement.
Having not done that, it implies you're possibly in on the fraud, and just shaking a money tree opportunistically to see if you can double your money. PayPal doesn't know you're not the person who cashed the check using a fake identity, or co-conspirator.
Involving the police doesn't guarantee a better outcome, but it improves the odds in my experience.
You really should have contacted them the moment you were informed of the fraud IMHO.
You really should have done that immediately upon hearing it was cashed, definitely upon receiving the check images. Time is not on your side AIUI, and it's already such a small sum.
Fucking paypal.